Chaidir Anwar Tanjung/GB, Jakarta – Caltex operations in Bengkalis, Riau, on Sumatra island, have been halted once again by disgruntled locals demanding employment at the oilfields. The situation seems to be deteriorating further as Caltex workers told the Riau Legislative Council that the company has discriminated against them in wage and contractual matters.
On Tuesday, 200 contract workers representing around 20,000 workers at the Bengkalis operations spoke before Commission V of the Provincial Legislative Council which deals with labour issues, amongst other things. The workers were largely represented by A Simbolon, leader of the Indonesian Prosperous Labor Union (SBSI) at Caltex.
He said the discrepancy in wages between Indonesians and foreigners at Caltex was incredibly wide and asked the Council to take measures to ensure the gap was lessened. They also said that Caltex and many of its contractors had not fully employed workers who had successfully fulfilled their trial period. While after three months the company was supposed to fully employ workers, some had worked for over a year on contracts which did not offer the existing benefits of full employment.
L Sitepu, Head of the Commission, expressed regret that Caltex's Director had not attended the hearing. "If only the staff come, how can the problems be resolved? We ask the staff not to come again if they are not invited. We only invited the Director," he said rather peeved.
On Wednesday at the oilfields site, Caltex was coming under renewed pressure from the locals of Sungai Rangau village who have been negotiating for over a month to resolve their grievances. Hundreds of local villagers took to the streets and marched to the oilfields, eventually resuming their blockade so that all traffic in and out of the site was completely stopped. Two vehicles reportedly owned by one of Caltex's contractors was torched by the irate protesters.
As previously reported, several weeks ago, 75 locals petitioned Caltex management for employment but their request went unnoticed until they returned with supporters and occupied five oilfields at a cost of Rp 2 billion per day per oilfield to Caltex. They also seized around 37 vehicles which were all eventually returned. Caltex agreed to hire the 75 but reneged on the deal. While the occupation ended after the negotiations, locals returned to blockade the fields.
Then last Friday, representatives of the locals and company met in talks facilitated by the provincial government in Duri, 120 kms from the provincial capital of Pekanbaru. While Caltex said that it could not employ locals, it promised to devote funds to a community development program to stimulate the local economy.
With labourers protesting, the blockade resumed and protesters venting their frustrations on company property it looks like tougher times ahead for Caltex in Riau despite the proposed CD program.